Tally interview Questions and Answers

Tally is popularly known as an accounting software for small and medium businesses. It does all the functions of accounting that a particularly mid-sized business has. This is the view of most of the persons who know about Tally. Tally is a software for accounts and inventory management, which is used for performing many functions like

• Performing all basic accounting functions
• Storing details and managing inventory items
• Estimating job costing
• Managing payroll
• Filing tax return, managing profit, and loss statement, preparing a balance sheet, VAT forms, trial balance, cash-flow report, etc.
• Maintaining budget scenarios
• Calculating interest on the outstanding amount
• Managing data over different locations and synchronize it

As there are many definitions in book and i recommend you to learn any one

“Accounting is an art of recording classifying and summarizing in a significant manner and in terms of money event and transaction which are at least of financial character and interpreting the result thereof” “American institute of certified public accountant”

Tally ERP is an accounting software used to record the financial transactions and events. This is a multi-function software which includes inventory management, accounting, payroll preparations, cost centre management, multiple godowns management, multiple currency function etc. It is simple accounting software which is user friendly and can be configure according to your business requirement.

A reconciliation statement is prepared when the passbook balance differs from the cashbook balance.

Tally.ERP 9 is India’s leading business management software for GST, accounting, inventory, and payroll. It is economical and one of the most popular ERP software solutions available in the industry, used by 11 lakh businesses. You can download free version of Tally.ERP 9. Tally.ERP 9 software is to the complete product that are retains original simplicity yet offers comprehensive business functionalities such as Accounting, Finance, Inventory, Sales, Purchase, and Branch Management along with capabilities like Statutory Processes, excise and etc. Whatever on demands, Tally.ERP 9 makes life a lot easier with ideal combination function, control and the customizability built-in, they permit business owners and associates to the more.

Benefits:

• Powerful remote capabilities that boost collaboration.
• Easy to find qualified personnel.Easy to customise.
• Low cost of ownership via quick implementation, Tally Integrator, Support Centre

By depreciation we mean that a value of an asset is decreasing as it is in use. It has two types such as “Straight Line Method” and “Written Down Value Method”.ts

Anything which we possess and have control right and in coming future that will give us some economic benefit is known as Assets.

In Tally, Rally tally is your place to find, publish, and coordinate civic events.

E-mailing option: Users can send accounting reports to multiple recipients along with an additional facility like Net-banking and Printing in various format is provided.

Print Bank Transaction Details: It provides an option to take the print of bank details on formal receipt

Accounting Voucher: A new type of numbering feature is added to the voucher, it ensures that the voucher is numbered sequentially

Budgets and Credit Limits: The Credit Limit control set for a party ledger will not be applied on sales orders. The warning message on the credit limit will appear and the voucher can still be saved.

CST: Even in a simple format the CST form details entered in the invoice will get printed

Excise for Manufacturers: All details related to buyers and suppliers can be displayed in the voucher also daily stock register can be maintained according to date wise, multi items types and Tariff wise

Inventory Vouchers: For inventory section, you can now mention the Godown address and also print the name

Payroll: New TALLY ERP 9, enables processing of salary according to the National Pension Scheme

Service Tax: Under journal vouchers, the taxable amount, taxable percentage and notification number will be showed in the service tax details. Auto adjustment of service tax payable can be done against service tax input credit and cenvat

VAT Option: Recording multiple items with different VAT rates is possible by configuring the setting of “Default Accounting Allocations for Selected Item In Invoice.”

Tax Audit: Form like 3CB, 3CD and 3CA have been updated as per the requirements of CBDT

XBRL: The document is constrained to only those companies that have the nature of the report set to consolidate.

Job Work: The Order Outstanding’s – Orders report under Job Work out Reports was not displaying orders according to the period specified in the report.

Order to Receipt (Sales Process): When multiple stock items having separate delivery, notes were used to record a sales invoice and their respective delivery notes were tracked in the same, the order in which the stock items were being captured in the sales invoice were not as per the order in which the delivery notes were selected.

 In Tally ERP 9, Group is a collection of ledgers of the same nature. In the business, expenses like electric bills, telephone bill, conveyance, etc. are commonly included in groups. Ledger based on these expenses are created to be used while accounting vouchers are entered.

Balance Sheet in Tally ERP 9 will display two columns with Liabilities and Assets.  The balance sheet displays the closing balances of all the primary groups or capital accounts and the net profit for the period.

Statement of inventory is used to view the reports on Inventory based on Godowns. Tracking details of items according to the inventory.  Also, to query on stock and check out the budgets forecasts and plans, statistics, etc.

To recover the last line which is removed, short cut used is Ctrl+U.

Directory in Tally ERP 9 specifies the path where the company data will be stored.

We should key in F8 (Cntrl+F8), which will enable us to select the credit note voucher in Tally ERP 9.

We should use the shortcut keys Alt + 2 to duplicate a voucher.

We should use the shortcut keys Alt + A to add a voucher.

The short cut to recall the last narration stored for the first ledger in the voucher is Alt+R.

 In Tally ERP, Trial Balance is basically a summary of all the ledger balances and checks whether the figures are correct and balanced.  It is a way to confirm that the journal entries are correctly posted to the general ledger. In trial balance, the total of all debts balances should be equal the total of all the credit balances.

It is mainly concerned with recording of financial data relating to the business operations in a significant and orderly manner.

Sales Tax is liability for the business therefore it will be shown in the liability side of the balance sheet but before putting sales tax in liability we have to see where sales tax is shown in the trial balance sheet.

The Tally Certification is a simple and effective way to demonstrate mastery of Tally Helps employers identify and hire. Contributes to your professional image, profile, credibility, and career opportunities

GST is an acronym for Goods and Services Tax. It will replace VAT, CST and Service Tax and instead there will be only one tax in the future which will be GST. Tally ERP 9 is a business application for executing business transactions and Tally GST is a module of Tally ERP, using which users can file the returns as per the statutory compliances.

Component of GST are

• CGST: Central GST
• SGST: State GST
• IGST: Integrated GST
• GST Rates:
• There are likely to be 3 sets of rates as below:
• Merit Rate
• Standard Rate
• De-Merit Rate

Cash: Under the group Cash-in-hand, cash ledger is created, where the opening balance can be entered as the books begins from.

Profit and Loss Account: This ledger is created under Primary, where previous year’s profit or loss is entered as the opening balance.

There are different types of vouchers that can be created in Tally ERP 9 are: –

Contra Voucher (F4): It points the transfer of funds from a bank account to the cash account or cash account to a bank account, or in a different bank account of different banks.

Payment Voucher (F5): It explains the historical payments on each account like payment of salary, rental, etc.

Receipt Voucher (F6): Describes the transactions that relate to payments received.

Journal Voucher (F7): It maintains the expenses to maintain the organization’s running costs.

Sales/Invoice Voucher (F8): This voucher describes the sales made, it displays the sale invoice

Credit Note Voucher (Cntrl+F8): Entry to this voucher is made when a customer returns the products which wasn’t correctly dispensed.

Purchase Voucher (F9): Voucher made for items purchased for running the business like raw materials, etc.

Debit Note Voucher (Cntrl+F9): Voucher for keeping records when goods are returned to suppliers due to damage goods.

Reversing Journals (F10): It is a special entry that gets automatically reversed after the date of the issue.

Memo Voucher (Cntrl+F10): This voucher marks the unknown expense at a moment of time which can be converted to actual sale voucher or can be deleted.

A document that accompanies a goods shipment and lists details about the goods delivered. A delivery note explains what the contents of a package are. If some goods that were ordered are not enclosed (due to lack of stock, unavailability, etc.) they will also be listed on the delivery note.

Euro is for Europe. A tally is the red light on an active (television) camera, indicating that the camera is filming. 4. Do members get reductions when we are working on that one, and I think we will start with the classics, such as membership reductions on subscriptions for audiovisual magazines.

To view the profit and loss statement, we should press F1: Detailed which will display the data based on the default primary groups. With every transaction/voucher that has been entered instantly.

Items may be returned for a full refund if they are deemed to be dysfunctional (do not operate the right way when you get them) or you did not receive the right size (such as with rings, etc.) when you receive them. You will have to pay for the shipping costs of the return.

A compound journal entry is just like other accounting entry where there is more than one debit, more than one credit, or more than one of both debits and credits. It is essentially a combination of several simple journal entries.

The customer when returns the goods get credit for the value of the goods returned. A credit note is sent to him intimating that his a/c has been credited with the value of the goods returned.

Debit note: When the goods are returned to the supplier, a debit note is sent to him indicating that his a/c has been debited with the amount mentioned in the debit note.

The suspense account is an account to which the difference in the trial balance has been put temporarily.

Account Books Menu includes the following.

• Bank Book (s)
• Cash Book (s)
• Ledger
• Group Summary
• Sales Register
• Purchase Register
• Journal Register

Miscellaneous Assets which are not covered under the classification of fixed assets as per accounting standard misc assets which are not shown in the profit and loss account for example preliminary expense, development expenditure and expenditure on raising of share and debentures.

Accrued Income: Accrued income means income which has been earned by the business during the accounting year but which has not yet been due and, therefore, has not been received.

Tally.Server 9 is a ‘Series A’ Enterprise Class product for medium and large size businesses whose pace of growth requires for it to invest in infrastructure that will help them improve their business efficiencies. Tally.Server 9 helps enhance the power and control of Tally.ERP 9 Gold users by converting the existing ‘peer-to-peer’ kind of data access to ‘server based’ data management.

The Tally.Server 9 technology is built with multi-version concurrency capabilities for providing most efficient scalability. Requests from every user get equal priority and get solved in parallel with others, rather than sequentially. There is no queuing of access or modification requests and so every user will feel as if he were working with his own local copy or snapshot of data. Tally.Server 9 will ensure that the data access/modification by a user is isolated to his/her own snapshot, thus allowing other users to operate smoothly.

Tally Solutions, a provider of business software solutions, has launched Tally Xcelerator (TX) to provide business consultancy services to small and medium businesses.

TX program, our point is to upscale and upskill these organizations which will in the long run contribute towards the advancement of the nation’s economy,” said India Business Head Tally Solutions Pvt. Ltd, Joyce Ray.

(source: Tally and wiki and other)